Canadian Accredited Insurance Broker Program CAIB 1
Comprehensive Questions with Their Verified Answers
2025 Rollout!
the undertaking by one person to indemnify another person
against loss or liability for loss in respect of a certain risk or
INSURANCE
peril to which the object of the insurance may be exposed...or
to pay a sum of money or other thing of value upon the happening
of a certain event
an agreement between two or more persons which creates an
CONTRACT
obligation to do or not to do a particular thing
CONSIDERATION an exchange or something of value between parties
onr has an insurable interest in the subject matter of the
INSURABLE INTEREST
insurance when they will suffer financially by a loss
the law requires insurance contracts maintain a higher standard of
UTMOST GOOD FAITH honesty than is needed of other contracts. The duty applies to
the insured, the insurer and the
broker
application of the principle of indemnity ensures people receive
INDEMNITY
the actual amount of their loss no more and no less
a temporary agreement in which the insurer agrees to provide
INSURANCE BINDER
certain coverages pending the issuance of the policy
a written agreeement or contract between the insurer and the
AGENCY AGREEMENT
brokerage which acknowledges their relationship
one which is unable in law to support the purpose for which it
VOID CONTRACT
was intended. Such contracts are deemed never to have
existed
a contract that may be voided at the option of the wronged party
VOIDABLE CONTRACT
only and not the wrongdoer
PERIL the cause of loss
DIRECT LOSS occurs when the peril insured actualy attacks the object of insurance
INDIRECT LOSS losses which arise as a consequence of a direct loss
ACTUAL CASH VALUE new or replacement cost of the property at the time of the loss, less
depreciation
the cost to repair or replace the lost or damaged property with
REPLACEMENT COST
new property of like kind and quality, without deduction for
depreciation
Comprehensive Questions with Their Verified Answers
2025 Rollout!
the undertaking by one person to indemnify another person
against loss or liability for loss in respect of a certain risk or
INSURANCE
peril to which the object of the insurance may be exposed...or
to pay a sum of money or other thing of value upon the happening
of a certain event
an agreement between two or more persons which creates an
CONTRACT
obligation to do or not to do a particular thing
CONSIDERATION an exchange or something of value between parties
onr has an insurable interest in the subject matter of the
INSURABLE INTEREST
insurance when they will suffer financially by a loss
the law requires insurance contracts maintain a higher standard of
UTMOST GOOD FAITH honesty than is needed of other contracts. The duty applies to
the insured, the insurer and the
broker
application of the principle of indemnity ensures people receive
INDEMNITY
the actual amount of their loss no more and no less
a temporary agreement in which the insurer agrees to provide
INSURANCE BINDER
certain coverages pending the issuance of the policy
a written agreeement or contract between the insurer and the
AGENCY AGREEMENT
brokerage which acknowledges their relationship
one which is unable in law to support the purpose for which it
VOID CONTRACT
was intended. Such contracts are deemed never to have
existed
a contract that may be voided at the option of the wronged party
VOIDABLE CONTRACT
only and not the wrongdoer
PERIL the cause of loss
DIRECT LOSS occurs when the peril insured actualy attacks the object of insurance
INDIRECT LOSS losses which arise as a consequence of a direct loss
ACTUAL CASH VALUE new or replacement cost of the property at the time of the loss, less
depreciation
the cost to repair or replace the lost or damaged property with
REPLACEMENT COST
new property of like kind and quality, without deduction for
depreciation
